Coburn: Washington to impose “financial repression” if spending not reduced

posted at 3:05 pm on July 20, 2011 by Ed Morrissey

CNS News reports on a presentation by Senator Tom Coburn on Monday for his deficit-reduction proposal, “Back in Black,” in which the doctor from Oklahoma delivers a very tough diagnosis and prognosis for America. If Congress doesn’t end its profligate spending and fix the personal and corporate tax codes, the resulting debt load will force the government to start printing “fiat money” in order to meet its obligations. That will destroy accumulated capital among all classes in the US and significantly lower living standards for the next generations of Americans. We don’t have long to act before Washington begins imposing “financial repression,” Coburn warns:

“In the real world, a tax increase is any government policy that takes away your wealth. Well, that’s exactly what’s getting ready to happen in our country through financial repression. The assets that you have will be diminished in value as the government creates fiat money to pay for our profligate spending,” he told reporters at the Capitol on Monday.

“Tax expenditures are not tax cuts. Tax expenditures are socialism and corporate welfarism. Tax expenditures are increases on anyone who does not receive the benefit or can’t hire a lobbyist or special interest group to manipulate the code for their favor. Politicians love to play the tax code because it benefits the politicians. No conservative should support Washington picking winners and losers through the tax code. Who do we want deciding that? Markets or politicians?”

Coburn said his proposal would also save over $1 trillion by bringing Defense spending back to the level under the Bush administration at the “height” of the Iraq War surge.

“The American people are tired of Washington waiting until the last minute to avoid a crisis when it’s a crisis that Washington itself created. The crisis though is not the debt limit nor its deadline. The Congress’ crisis – the crisis is Congress’ refusal to make hard choices and reduce a debt that has become our nation’s greatest national security threat,” he said.

“Doing nothing is a tax increase, a benefit cut for seniors and the poor and a betrayal of the core values of both parties; 9 trillion dollars is very reasonable – that sounds idiotic to Washington.”

As an advocate of the flat tax for many years, I couldn’t agree more with Coburn’s assessment of the current progressive tax system. It leaves out too many people (nearly 50% these days) while gaming the system so badly that most Americans need legal help in determining their proper level of taxes. The corporate tax code is even worse, riddled with special favors inserted by lawmakers for their patrons that turn the government into the Deus ex machina of the markets, rather than consumers. It’s a mix of both socialism and corporatism, neither of which helps economic growth or the impartial rule of law — and I’d also add social engineering as a related charge of socialism.

However, as much as I agree with Coburn in this assessment, both on tax reform and his overall point, the effort on Monday loses substantial impact because of what followed. Instead of sticking with his plan, Coburn threw in his lot with the Gang of Six and their ambiguous proposal. Why not at least stay independent long enough to get the Back in Black proposal some serious discussion? I like it better than even the CCB Act passed last night in the House, as it actually reduces the footprint of government and rolls back much of the mischief in the tax code. The Coburn Plan doesn’t interfere with efforts to get a Balanced Budget Amendment, and it’s at least as ready as the Gang proposal for actual legislative work.

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“The American people are tired of Washington waiting until the last minute to avoid a crisis when it’s a crisis that Washington itself created. The crisis though is not the debt limit nor its deadline. The Congress’ crisis – the crisis is Congress’ refusal to make hard choices and reduce a debt that has become our nation’s greatest national security threat,” he said.

This, times 1000. Atta boy, Coburn.

search4truth on July 20, 2011 at 3:08 PM

Why not at least stay independent long enough to get the Back in Black proposal some serious discussion?

Pay off? Offer he couldn’t refuse? Late night visit from … well, you get the idea.

j_galt on July 20, 2011 at 3:09 PM

Instead of sticking with his plan, Coburn threw in his lot with the Gang of Six and their ambiguous proposal

Ed, I emailed this to the tip line, after my conversation with a staffer in Sen. Hutchison’s office:

I just got off the phone with a staffer in Sen. Hutchison’s (R-Tx) office to encourage the senator to support the House CCB/BBA bill that passed last night. In doing so, I mentioned that the Gang of SIx’s 5 page bullet point outline that was released yesterday was woefully insufficient to count as a “plan” and should not be viewed as a viable option. This staffer then said, to my utter amazement, that the Gang of Six’s plan was actually 500 pages long! I asked her to clarify that. And she confirmed that it was over 500 pages long. I asked if she was referring to the previous Gang of Six plan that Sen Coburn walked out on earlier this year, which he called unworkable, and she said, no! She said that these new 500 pages were new and not related to the previous Gang of Six plan, and confirmed that that is what her chief of staff told the other staffers. I then asked her if that text has been made available, and she said no.

So look out, GOP. We may be walking into a trap with this whole Gang of Six talk. Stay tuned for any details that break.

Weight of Glory on July 20, 2011 at 3:10 PM

There must be a psychologist of psychiatrist who reads this blog. Please explain WTF is wrong with Coburn and the other Repubs who act this way. Better yet, have them institutionized.

JimP on July 20, 2011 at 3:13 PM

He favors an increase in the debt ceiling. That’s all I need to know.

Bugler on July 20, 2011 at 3:15 PM

The 64 Trillion question is how do we avoid the problem with every republic exemplified by this quote from Benjamin Franklin:

When the people find they can vote themselves money, that will herald the end of the republic.

How do we avoid this fate?

Chip on July 20, 2011 at 3:16 PM

So when Coburn said it, did he have true conviction on what he said?

Then explain what happened next.

Sir Napsalot on July 20, 2011 at 3:16 PM

One person’s ‘financial repression’ is another person’s redistributive ‘social justice.’

…the resulting debt load will force the government to start printing “fiat money” in order to meet its obligations. That will destroy accumulated capital among all classes in the US and significantly lower living standards for the next generations of Americans.

Redistrubtion and fundamental transformation. Bank on it.

petefrt on July 20, 2011 at 3:17 PM

Everyone gets their 5 minutes of airtime in this drama.

faraway on July 20, 2011 at 3:17 PM

How do we avoid this fate?

Apparently, we don’t.

Bugler on July 20, 2011 at 3:17 PM

There must be a psychologist of psychiatrist who reads this blog. Please explain WTF is wrong with Coburn and the other Repubs who act this way. Better yet, have them institutionized.

JimP on July 20, 2011 at 3:13 PM

They are. The institution is called the “Senate”.

Aviator on July 20, 2011 at 3:20 PM

“In the real world, a tax increase is any government policy that takes away your wealth. Well, that’s exactly what’s getting ready to happen in our country through financial repression. The assets that you have will be diminished in value as the government creates fiat money to pay for our profligate spending,” he told reporters at the Capitol on Monday.

This is what the GOP should have been pounding since day 1, especially when accused of siding with Big Business and ignoring the little guy. Then back it up with a big example of a donk inserted change to the taxcode benefitting some big business and bracket it with a small example. Then price it in terms that Joe Public can understand, i.e. this loophole cost GE x million dollars in lobbyists and net effect is that it costs you 20 cents for every light bulb you buy which GE deferred the tax cost to you.

AH_C on July 20, 2011 at 3:22 PM

The irritating this is….they know what we want, they can articulate the problem, but they don’t do a damn thing except make it worse.

search4truth on July 20, 2011 at 3:22 PM

I want to hear what Sheila Jackson Lee thinks about all this. She’s been right on target so far.

a capella on July 20, 2011 at 3:23 PM

Why not at least stay independent long enough to get the Back in Black proposal some serious discussion? I like it better than even the CCB Act passed last night in the House, as it actually reduces the footprint of government and rolls back much of the mischief in the tax code. The Coburn Plan doesn’t interfere with efforts to get a Balanced Budget Amendment, and it’s at least as ready as the Gang proposal for actual legislative work.

I think that Coburn is just trying to make the best of a bad situation. There is nothing he can come up with that everyone is going to like anyway, so he is trying to get what he can. It does not mean he is caving on anything, it means he is being honest and realistic. Those are rare things in American politics these days.

He favors an increase in the debt ceiling. That’s all I need to know.

Bugler on July 20, 2011 at 3:15 PM

The House bill that just passed also support an increase in the debt ceiling. I realize that some of the candidates like Bachmann and Pawlenty are too busy pandering to actually be honest about what is at stake here, but not everyone is that irresponsible for self serving. In fact when Obama was in the Senate he voted against an increase in the debt ceiling, more pandering.

I want as good a deal as they can get, but I we really do not know what would happen if they did not raise the debt ceiling. It might not be over night, but in time everyone could be effected. Interest rates, the currency, world markets and more could be effected as well. I think Obama is the kind of guy who could make it worse than it had to be if he thought he could use it politically as well. I think some people are playing with fire here.

Terrye on July 20, 2011 at 3:24 PM

to impose

Seriously? They are already repressing job creators. If I didn’t have to give 44% of my earnings just to the Federal government every effing year, I could hire a few people and give them a generous salary. But nope, it goes to Washington where the lefty bureaucrats take a cut before sending it unto welfare recipients and union thugs.

jawkneemusic on July 20, 2011 at 3:24 PM

Sorry, Ed, but for me, the moment Coburn realigned himself with the likes of Dick Durbin, any credibility he may have had with regards to trying to solve this debt issue went sailing right out the window.

No one, I mean NO ONE, should place their trust in Dick Durbin.

NO ONE!

pilamaye on July 20, 2011 at 3:25 PM

How do we avoid this fate?

Apparently, we don’t.

Bugler on July 20, 2011 at 3:17 PM

You’ll have to pardon me for saying this, but that’s not a very good answer.

Chip on July 20, 2011 at 3:27 PM

Isn’t this what Glenn Beck was always talking about on his show when he was telling people to prepare. Their money just wasn’t going to be worth as much. Our treasury has been devaluing our dollar for some time. Tom Coburn just made Beck’s argument using different language, this isn’t exactly news.

Dr Evil on July 20, 2011 at 3:28 PM

Another commenter (whose name regretfully I cannot recall) posted this this morning. Since reading it, I can’t seem to get it off my mind.

Obama could stir a Tea Party crisis
By Spengler in Asia Times

President Barack Obama’s best hope of re-election lies in provoking Republicans to force the United States into technical default, engineering a brief but severe financial crisis in order to appear as crisis-manager-in-chief. The Tea Party movement may be marching into a political ambush, in which Obama will be able to portray the born-again budget-cutters as irresponsible fanatics who threaten to tip America into a new depression. The now unpopular president then would assume the role of national savior in time of crisis.

Then this afternoon, Rush said he bet Øbama would invoke the 14th Amendment to exceed the debt ceiling if expedient, and that he probably had the papers to do it in his desk drawer.

Call me paranoid, but I get the feeling that Øbama, with the economy tanking, has decided to engineer us into a financial/economic/Constitutional crisis for the sake of his re-election.

petefrt on July 20, 2011 at 3:29 PM

Ok, I just got done talking to a Sen. Cornyn staffer, and this staffer made it clear that a plan of that size does exist. He reminded me that Sen. Hutchison’s staffer would likely be correct because of Sen. Hutchison’s recent moves to be associated with the Gang of Six. Cornyn’s staff, in reviewing the Go6 plan, maintains that there is still no actual legislative language in it and that it reads more like a UN resolution. Cornyn will not support it, and instead puts his whole effort behind the Senate version of CCB.

Weight of Glory on July 20, 2011 at 3:30 PM

How do we avoid this fate?

Apparently, we don’t.

Bugler on July 20, 2011 at 3:17 PM

You’ll have to pardon me for saying this, but that’s not a very good answer.

Chip on July 20, 2011 at 3:27 PM

Chip, it’s a horrible answer, but it appears to be true, doesn’t it?

Bugler on July 20, 2011 at 3:31 PM

Paul Ryan was making the same point the other day. It needs to be made more often.

Anybody who has any savings or assets at all is going to get robbed as the government spending junkies devalue the currency to pay for their habit.

It’s going to ruin us.

forest on July 20, 2011 at 3:32 PM

Good analysis Ed …coburn should have stuck with his plan much longer

cmsinaz on July 20, 2011 at 3:33 PM

Erick Erickson:

Think of the Senate “Gang of 6″ Plan as the “Gangrene Plan.” It will slowly, but surely, rot away the nation.

INC on July 20, 2011 at 3:33 PM

Terrye on July 20, 2011 at 3:24 PM

The assertion that refusal to increase the debt ceiling would lead to default and all sorts of other calamitous consequences is demonstrably untrue. You believe it because you choose to believe it.

Bugler on July 20, 2011 at 3:33 PM

Coburn: Washington to impose “financial repression” if spending not reduced

If that’s true then why did this POS turn-coat and undercut tea party efforts to do exactly that?

FloatingRock on July 20, 2011 at 3:33 PM

Why is anyone paying attention to this buffoon? He leaves the Six, comes up with own plan, then goes back to play patty cake with the Six again.

He’s about as dependable as the weather.

Knucklehead on July 20, 2011 at 3:34 PM

“That will destroy accumulated capital among all classes in the US and significantly lower living standards for the next generations of Americans.”

Now why would Obowma want to do that…?

… Oh, wait!

Seven Percent Solution on July 20, 2011 at 3:34 PM

Call me paranoid, but I get the feeling that Øbama, with the economy tanking, has decided to engineer us into a financial/economic/Constitutional crisis for the sake of his re-election.

petefrt on July 20, 2011 at 3:29 PM

A lot of fear mongering is going on. Tom Coburn is trying to scare people into his camp for example. He really hasn’t made a case, that hasn’t been made before with puppets and food product by Glenn Beck :) There is probably even video on you tube of Glenn Beck making the case Coburn is making.

The end of the day we have enough money to pay the interest on the national debt, and more. So how is that a severe financial crisis, unless Obama orders the treasury not to pay our bills? I am pretty sure that’s against the constitution. Along with invoking the 14th amendment to raise the debt ceiling himself. If he was going to do that, he wouldn’t have agreed to a short term debt ceiling increase, tied to deficit cuts. He just would have gone straight to the 14th Amendment, unpopular politically, and I am pretty sure the Supreme Court would shoot it down.

Dr Evil on July 20, 2011 at 3:36 PM

I am now convinced that the only sane path is to refuse to raise the debt ceiling.

Vashta.Nerada on July 20, 2011 at 3:39 PM

Cut Uncle Sam’s credit card! Let Øbama decide what to cut. That would be hilarious.

Mojave Mark on July 20, 2011 at 3:40 PM

Chip, it’s a horrible answer, but it appears to be true, doesn’t it?

Bugler on July 20, 2011 at 3:31 PM

Yes, I agree, but there has to be an alternative than a society collapsing in on itself like this, which is why I posed the question.

I don’t have a ready answer, but we as a society had bloody well come up with one.

Chip on July 20, 2011 at 3:40 PM

Gang of Six. Cornyn’s staff, in reviewing the Go6 plan, maintains that there is still no actual legislative language in it and that it reads more like a UN resolution. Cornyn will not support it, and instead puts his whole effort behind the Senate version of CCB.

Weight of Glory on July 20, 2011 at 3:30 PM

Will wonders never cease. So Cornyn is playing good cop and Hutchinson is going to play bad cop. I am not really surprised, Hutchinson is retiring next year.

Dr Evil on July 20, 2011 at 3:42 PM

the resulting debt load will force the government to start printing “fiat money” in order to meet its obligations.

Since the Fed is not part of the government, Ed, do you really mean that the US will print US Notes (“Greenbacks”)?

we really do not know what would happen if they did not raise the debt ceiling.

The Federal budget would be balanced. That would happen.

Interest rates, the currency, world markets and more could be effected

And then there’s your real estate values–don’t forget that.

I think some people are playing with fire here.

More cowbell.

Emperor Norton on July 20, 2011 at 3:43 PM

will force the government to start printing “fiat money”

What an idiot…where the hell has he been…the Fed has been printing fiat money out of thin air for years…

PatriotRider on July 20, 2011 at 3:44 PM

“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”

Vladimir Lenin

The uneducated tend to think that the target of the communists is the ‘rich’. It’s not, their target is the middle class because that’s where the real total wealth is.

slickwillie2001 on July 20, 2011 at 3:48 PM

I think that Coburn is just trying to make the best of a bad situation. There is nothing he can come up with that everyone is going to like anyway, so he is trying to get what he can. It does not mean he is caving on anything, it means he is being honest and realistic. Those are rare things in American politics these days.

When you think you know what he’s thinking and you have to explain it to everyone else, then he’s not being very honest and realistic because he didn’t say what you said.

In other words, why doesn’t he just come out and say what he means so you don’t have to explain it for him.

I’m not being negative with you but frustrated with him.

Vince on July 20, 2011 at 3:49 PM

However, as much as I agree with Coburn in this assessment, both on tax reform and his overall point, the effort on Monday loses substantial impact because of what followed. Instead of sticking with his plan, Coburn threw in his lot with the Gang of Six and their ambiguous proposal.

Ed

Exactly. The American People are also good and sick of double-speaking politicians who reward their buddies in the Senate by supporting their insupportable crap, Senator.

Jaibones on July 20, 2011 at 3:49 PM

Coburn has been the most consistent advocate in the Senate for reduction of Federal spending. Agree with him or not, the man has definitely been in the right most of his career and deserves our respect. Consider his remarks in full and don’t just pick at a sound byte or so to play gotcha with. The man makes sense.

MJBrutus on July 20, 2011 at 3:50 PM

Gang of Six. Cornyn’s staff, in reviewing the Go6 plan, maintains that there is still no actual legislative language in it and that it reads more like a UN resolution. Cornyn will not support it, and instead puts his whole effort behind the Senate version of CCB.

Weight of Glory on July 20, 2011 at 3:30 PM

I find this entire statement quite remarkable. The part about the UN is almost exactly what I said this morning, only I called it a high school sophomore’s civics class term paper — all blather with nothing of value.

Jaibones on July 20, 2011 at 3:52 PM

He favors an increase in the debt ceiling. That’s all I need to know.

Bugler on July 20, 2011 at 3:15 PM

And he doesn’t seem to grasp the idea the government has been printing fiat money and stealing from us slaves a very very long time.

How many months do you have to work to pay off your income taxes and FICA which you will never see again?

You get three guesses. The first two don’t count.

dogsoldier on July 20, 2011 at 3:53 PM

Dr Evil on July 20, 2011 at 3:36 PM

Yes, Beck has been making this case for some while now. They called him ‘crazy’.

The end of the day we have enough money to pay the interest on the national debt, and more. So how is that a severe financial crisis, unless Obama orders the treasury not to pay our bills?

Yes, there’s enough to service the debt, though the left would like to obfuscate that fact.

I guess the main difference between us is that you seem to expect Øbama to do what’s best for the country (avoid a crisis) while I expect him to do what he sees as expedient for his re-election (engineer a crisis that makes people hurt and blame it on the GOP).

Isn’t there a poll out today that suggests people are divided on this now pretty much down the middle — about half think he’ll act in his own interest and half in the best interests of the country?

petefrt on July 20, 2011 at 3:53 PM

The man makes sense.

MJBrutus on July 20, 2011 at 3:50 PM

This proposal is crap, and I don’t care what Coburn says. It is exactly the kind of sh!t Illinoisans have been smelling for years coming out of Dick Durbin’s office. It is tripe.

The guy who was calling for a $9 trillion decrease in spending on Monday, endorsed a proposal on Tuesday which doesn’t decrease spending by a penny.

PFFFFTTTTTtt.

Jaibones on July 20, 2011 at 3:55 PM

It’s a mix of both socialism and corporatism

The word you’re stumbling around for there is “Fascism.”

It’s too bad that collectivists always give collectivism a bad name.

logis on July 20, 2011 at 4:06 PM

petefrt on July 20, 2011 at 3:53 PM

It all comes down to what Obama thinks is best for the country – him getting 4 more years? The Independents aka Centrist, won’t go for this monkey business. They swung wide to the Republicans last November. They don’t like the size of the national debt, and the non action/apathy by the Democrats to do something about it. The Democrats wouldn’t do anything about spending right now if it wasn’t for Independents voting Tea Party last November.

I think Obama has started triangulating, what else does he have? His bluff didn’t work. He’s got to save face, otherwise he goes into the election with dings, dents and scratches, he’s all about the optics the optics wouldn’t be good if a default happened on his watch. Obama is in full tilt campaign mode.

This statement by Carney is directed at the Independents.

The president has been clear that he will not support a short-term extension of the debt ceiling” without an agreement to cut the deficit, White House spokesman Jay Carney told reporters today. President Barack Obama plans to meet with top congressional Democrats today as the Aug. 2 deadline for raising the US$14.3-trillion debt limit nears.

Dr Evil on July 20, 2011 at 4:08 PM

Why are so many Republicans and conservatives acting like doing away with these corporate loopholes/welfare is “raising taxes”?

therightwinger on July 20, 2011 at 4:11 PM

Don’t look at what he says, look at what he does. Coburn talks a good game but folds like a cheap tent.

jnelchef on July 20, 2011 at 4:11 PM

Jaibones on July 20, 2011 at 3:55 PM

The problem is that the GOP doesn’t have any leverage. Until they can take the Senate and the WH all they are in a position to do is exercise a veto power in the House. I’m fine with those of them who are making big noises and all of that, but in the end they’ve got to raise the debt limit.

MJBrutus on July 20, 2011 at 4:15 PM

“In the real world, a tax increase is any government policy that takes away your wealth. Well, that’s exactly what’s getting ready to happen in our country through financial repression. The assets that you have will be diminished in value as the government creates fiat money to pay for our profligate spending,” he told reporters at the Capitol on Monday.

-
Obama’s plan all along…
-

RalphyBoy on July 20, 2011 at 4:15 PM

start printing “fiat money” in order to meet its obligations.

I wonder what he thinks QE1, QE2 and talk of QE3 is then.

elfman on July 20, 2011 at 4:16 PM

…..the resulting debt load will force the government to start printing “fiat money” in order to meet its obligations…..

Wait.

What?

You mean that they haven’t been printing fiat money continuously since 1964 when they did away with Silver Certificates?

And even worse, for the last year when Timmy and Ben put the presses on warp speed to buy bonds from themselves?

LegendHasIt on July 20, 2011 at 4:17 PM

Call me paranoid, but I get the feeling that Øbama, with the economy tanking, has decided to engineer us into a financial/economic/Constitutional crisis for the sake of his re-election.

petefrt on July 20, 2011 at 3:29 PM

You never know when the Reichstag might catch fire.

Aviator on July 20, 2011 at 4:17 PM

Dr Evil on July 20, 2011 at 4:08 PM

You may well be right on the triangulation thing. It’s the alternative to doubling down on Alinsky.

President Barack Obama plans to meet with top congressional Democrats today as the Aug. 2 deadline for raising the US$14.3-trillion debt limit nears.

Just heard he’s calling in GOP leaders for a meeting afterward. So he’s got something up his sleeve. Triangulation or Alinsky? We’ll probably soon find out.

petefrt on July 20, 2011 at 4:17 PM

Quite simply, I would prefer a “clean” 1 year debt-ceiling increase (just enough $$ to get to this time next year) with no spending cuts than this. At least that keeps this issue on the forefront for the coming election so we can have a real debate about spending, entitlements and taxes and let the voters decide.

If something like this gets passed Obama and the dems/media will trumpet from here til doomsday that they “cut spending” and came up with a “responsible plan” for the debt/deficit. Meanwhile, no cuts will actually happen and taxes and spending will increase.

So, we will have the worst of all worlds:

a) a debt ceiling increase;
b) Obama/dems getting credit for doing something;
c) tax increases via getting rid of deductions if not outright increases; and
d) no spending cuts whatsoever despite vague promises of future cuts.

This is both not good for America and not good for conservatives politically. It will be a total loss.

Monkeytoe on July 20, 2011 at 4:20 PM

You never know when the Reichstag might catch fire.

Aviator on July 20, 2011 at 4:17 PM

Yeah, with the heat wave, global warming, and such, one never knows. Almost anything might self-ignite, even the Reichstag.

(Or the oily hair on Debbie Wassermann-Schultz.)

petefrt on July 20, 2011 at 4:21 PM

Biggest winner, -Chrysler-Fiat.

slickwillie2001 on July 20, 2011 at 4:24 PM

we already have some financial repression…the ZIRP and the talk of capping the 10 years treasury rates and the Fed buying up a large portion of the T. bonds

From wiki:

Explicit or indirect capping or control over interest rates, such as on government debt and deposit rates (e.g., Regulation Q).

Government ownership or control of domestic banks and financial institutions while placing barriers to entry before other institutions seeking to enter the market.

Creation or maintenance of a captive domestic market for government debt achieved by requiring domestic banks to hold government debt via reserve requirements, or by prohibiting or disincentivising alternative options that institutions might otherwise prefer.

Government restrictions on the transfer of assets abroad through the imposition of capital controls.

Colburn knows that barry holds all the cards. He has his attack presscorpse, and his half-wit senators (durbin, reid) to ram thru anything he wants. And what he wants is TAX Increases. Anything else he’ll veto. if the country defaults, he wins…

Also, rememeber that 1T over 10 years is 100B/year. less than 1 percent gdp. the Left wants to get to 25 percent…this won’t get them very far

r keller on July 20, 2011 at 4:45 PM

I think more and more people are starting to understand now. More and more people really are starting to pay attention to politicians in Washington. Once you start really paying attention, the answers to your questions become obvious.

The charade in Washington DC really is just a distraction for the masses. Keep on rocking your vote and keep on letting big gov, big business, big banks and big labor steal your money. But hey, rock that vote and make a difference.

For decades and decades and decades, the majority of Americans have opposed almost everything DC has done. Yet, we somehow still be we are represented. Do you know how many people are in your congressional district? There are 600,000+ people in my congressional district. SIX HUNDRED THOUSAND PEOPLE! So, how does one man represent 600,000 people, exactly? Well, he doesn’t.

Politicians always do stupid, or illogical things by our standards, because they don’t live by our standards, or have our interest in mind, at all, ever.

A politician always has his election and paycheck in mind whenever he or she does or says anything.

j_galt on July 20, 2011 at 4:48 PM

The assertion that refusal to increase the debt ceiling would lead to default and all sorts of other calamitous consequences is demonstrably untrue. You believe it because you choose to believe it.

Bugler

So, you think cutting 40% of the federal government in one fell swoop to keep from breaching the debt limit would have few, if any negative consequences? We have enough revenue to cover debt payments, but we do not have enough to run the entire government. We have to borrow 40 cents of every dollar that it takes to run the government.

So, you’re right, we can cover the debt limit and not default. But without raising the debt limit, 40% of the government has to go bye bye, just like that. I’m all for getting rid of 40% of the government, but you’re fooling yourself if you think doing so basically overnight won’t cause some major issues.

Bottom line….the debt limit is going up, it’s just a matter of what Republicans can get out of it. We hold all the cards, if we’re willing to play them.

xblade on July 20, 2011 at 4:57 PM

The problem is that the GOP doesn’t have any leverage. Until they can take the Senate and the WH all they are in a position to do is exercise a veto power in the House. I’m fine with those of them who are making big noises and all of that, but in the end they’ve got to raise the debt limit.

MJBrutus

Actually, they have plenty of leverage. It’s called the House of Representatives, the body responsible for the budget. You’re right, the debt limit is going up, and anyone who doesn’t get that is naive at best. But we can get something out of it if we don’t blink. Send Obama and the senate a budget, and let them reject/veto it if they want. Then the collapse will be on their hands.

xblade on July 20, 2011 at 5:06 PM

Um,

to start printing “fiat money”

that is already happening, isn’t it? And the major cause if deficit spending.

AshleyTKing on July 20, 2011 at 5:59 PM

“They are. The institution is called the “Senate”.
Aviator on July 20, 2011 at 3:20 PM”

ROTFL!!!!! You’re right. I should have seen it too.

JimP on July 20, 2011 at 6:34 PM

Sarah Palin warned of just printing money in the 2008 campaign, Colburn’s just catching on

mathewsjw on July 20, 2011 at 11:29 PM